The defendant was prosecuted for operating a bitcoin trading platform without having obtained a license for providing investment services, which would be a criminal offense under the KWG if bitcoins were to qualify as financial instruments.

Unlike in most other European jurisdictions the regulatory practice in Germany has been to treat Bitcoins as units of account and as such financial instruments pursuant to Section 1 German Banking Act.

In its September 25, 2018 judgement, the 4th Criminal Division of Berlin Court of Appeal ruled that Bitcoin trading is not punishable because Bitcoins are not a financial instrument within the meaning of the Banking Act.

In its September 25, 2018 judgement, the 4th Criminal Division of Berlin Court of Appeal ruled that Bitcoin trading is not punishable because Bitcoins are not a financial instrument within the meaning of the Banking Act.

On August 24, 2018, ESMA announced, in its first use of this power, an extension of the existing ban from October 2, 2018 for binary options for those products it has not exempted from the further extension.